Published: Wed, December 06, 2017
Science | By Eileen Rhodes

Goods & Services Deficit Widened to $48.7 Billion in October

Goods & Services Deficit Widened to $48.7 Billion in October

The trade deficit increased to the highest since January and was above expectations of a Reuters poll of economists who had predicted the October deficit would stand at $47.5 billion.

"Looking ahead, exports should manage to gain some traction, supported by a healthy USA economy and a Canadian dollar hovering around the 80 United States cent mark".

Statistics Canada says the country's merchandise trade deficit narrowed to $1.5 billion in October as exports improved and imports took a step back. Imports are up 6.5 percent the first 10 months of 2017.

Imports hit a record $244.6 billion in October on growing US demand amid an improving economy, while exports were unchanged at $195.9 billion from September.

During his five-nation tour across Asia, the president promoted business deals in Japan, South Korea and China as ways to help lower trade deficits with major trading partners across the Pacific Rim. Imports, on the other hand, increased to $244.6 billion in October, up from $240.8 billion in September.

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The goods deficit with China increased from $34.6 billion in September to $35.2 billion in October.

Imports of industrial supplies and materials increased $1.8 billion, reflecting a $1.5 billion increase in crude oil imports.

The October increase in the goods and services deficit reflected an increase in the goods deficit of $3.8 billion to $69.1 billion and a decrease in the services surplus of less than $0.1 billion to $20.3 billion.

"The overall trade deficit is the result of the saving and investment decisions of USA households and businesses", the report said. Imports of drilling and oilfield equipment climbed by $304 million, and imports of cellphones rose by $303 million.

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